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The Association of Licensed Telecom Operators of Nigeria (ALTON) has cautioned the federal government against using the telecoms sector as a temporary solution to address the current economic challenges in the country.
ALTON Chairman, Gbenga Adebayo, delivered this message during his speech at the Groupe Spécial Mobile Association (GSMA) digital economy report launch held in Abuja.
Adebayo's remarks come amid discussions about a potential increase in telecom tariffs and the government's stance on the matter.
Highlighting the complexities facing the telecom industry, Adebayo stressed the importance of sustainable investment, effective regulation, and a conducive business environment to drive growth.
Speaking on the need for tariff review, Adebayo stated:
“The price review should be a simple regulatory process. The public debate this has gained makes it appear the industry is insensitive to people’s concerns. While the government tries to provide incentives for the public on account of ongoing macroeconomic headwinds, the telecoms sector should not be used as a palliative to solve the people’s problem. We must price right to sustain the industry; we must price right to have the right investment.”
Adebayo also addressed the numerous charges and levies imposed on operators, alongside the challenges posed by regulatory interference and lack of regulator independence.
He urged stakeholders, including policymakers, regulators, and operators, to collaborate in overcoming industry challenges and driving economic growth.
In response to the telecom operators' proposal for tariff increases, Minister of Communications Innovations and Digital Economy, Bosun Tijani, expressed skepticism. He emphasized the need for innovative solutions to counteract inflationary pressures and high operating costs.
Echoing a different perspective, economic expert and CEO of Financial Derivatives Company Limited, Mr. Bismarck Rewane, advocated for tariff adjustments. He argued that the current tariff regime constrains operators' capacity to invest in infrastructure, resulting in deteriorating service quality.
According to Rewane, poor telecom services not only affect subscribers but also have broader economic implications.
